EU Network Codes ‘Phase 2’ Implementation

Mike Thorne, EU Policy Manager 1st October 2015 – BAL & INT

Change delivered in respect of the following:

- Balancing Code requirements – GB balancing regime broadly aligned, however changes required as follows:

  - New nominations process at Interconnection Points (Shipper to TSO)
  - Adjustment to derivation of System Marginal Prices
  - New demand forecast at D-1 12:00

- Related Interoperability & Data Exchange Code requirements – complementary changes required as follows:

  - Nominations matching process at Interconnection Points (TSO to TSO)
  - Introduction of new gas allocation regime at Interconnection Points
    - Allocation is equal to shipper nominations (‘Allocate as nominate’)
  - Operational Balancing Account (‘OBA’)
  - Related revisions to ‘Interconnection Agreements’ 1st October 2015 – Gas Day Change

- Gas day has changed to 5-5 for balancing zone (BAL) at IPs (CAM)

- Gas Day interface solution (Option A) operating as expected

  - NG now accepting EOD measurements via XML, as per industry solution
  - Worked closely with Poyry and the sub-terminals up to and immediately after “go-live” to solve individual issues and ensure smooth operation from 1st October

- All NTS operational metering equipment reconfigured successfully

- Licence, UNC and UNC associated documents consequential changes complete

- Energy balancing currently operating in a “typical” manner, despite concerns over accuracy of shipper “5-5” nominations Change delivered in respect of the following:

- New standard EU wide auctions for interconnection Points (IPs):

  - standard capacity products, auction calendar, auction algorithm
  - Capacity to be offered on a **bundled** basis with capacity from the adjacent TSO.
    - capacity is converted and offered in kWh/h at the Bacton IPs.

- IP Capacity must be offered by the TSO via a joint web based booking platform.

  - Following industry consultation, NG agreed with adjacent TSOs to use the **PRISMA** booking platform General IP Auctions Overview Since 1st Nov

- Auction processes running smoothly

- > 3000 NG auctions held on PRISMA since first day ahead auction on 31st Oct

- 18+ shippers actively taking part in IP auctions on PRISMA at NG points (40+ Registered on PRISMA)

- A mixture of bundled and unbundled capacity offered to the market

- All IP bids have so far been allocated in full

  - IP auctions have all cleared at reserve price (no premium)

- Shippers also successfully trading capacity at IPs General IP Auctions Overview Since 1\\textsuperscript{st} Nov

- No competition has taken place at the 1:2 Interconnection Points, as NG has more available capacity than the adjacent TSOs.

- Bacton UKCS update:

  - continues under prevailing GB regime with new baseline
  - NGG have released non-obligated capacity to meet market demand at the ASEP Phase 2 – Systems Implementation Systems Implementation

- Thanks to everyone involved with systems implementation

  - Overall a success, most complex change since Exit Reform
  - There have been some issues to resolve
  - We recognise there are some learning points for us

- Challenging, multi-dimensional changes

  - Multiple TSOs and DNs, all with slightly different requirements
  - Interfaces with existing shipper systems
  - New interfaces with PRISMA and TSO systems
  - Multiple planning and testing schedules
  - All elements delivered on time Resolved Systems Issues

- Nominations ‘lock out’ issue during the matching process

- Start time not automatically populating for within-day matching cycles starting at hour bars 21:00, 22:00 and 23:00

- Shipper balance screens indicating incorrect confirmed nominations

- Users unable to re-nominate a positive value if a zero entered as the original nomination

- Day-ahead re-nominations submitted between 04:00 and 05:00

- Day-ahead interruptible auction failed to run on 2 occasions – PRISMA technical issue Issues Awaiting Resolution

- Locked out of amending SSN as a result of entering incorrect information

  - In the interim, Users can contact the Xoserve helpdesk to get the erroneous information deleted

- Re-nominating day ahead with APIs (found following 22/11 patch)

  - No issue if re-nominating directly on screen or within day

- Zero firm price within day is currently set to 0.00000001p/kWh/d

  - PRISMA limitation - very small impact seen (a few pence only)

- Fixes for these issues are being worked on but we are not currently able to advise delivery dates Phase 2 – Next Steps

- Lessons learned workshop planned for 7th January

  - To follow Transmission Workgroup meeting
  - Invitations to be sent out shortly
  - Chris Logue leading